Here’s How Crypto Uncle Changpeng Zhao Became Democrats’ Public Enemy No.1

[Ben Graham]

Few figures in digital finance have stirred as much controversy as Changpeng Zhao (CZ), the founder of Binance and one of the most influential names in crypto history. Once hailed as a visionary for building the world’s largest crypto exchange, CZ’s fall from grace under the Biden administration turned him into a symbol of Washington’s growing hostility toward crypto.

The Changpeng Zhao crypto saga, from his 2023 legal troubles to his 2025 presidential pardon, now embodies the clash between decentralized finance and Democratic regulation.

Why Did Democrats Turn Against the Crypto Powerhouse CZ?

The rift between CZ and the Democratic establishment began in November 2023, when President Biden’s Department of Justice filed sweeping charges against Binance and its founder. The DOJ accused the exchange of violating the Bank Secrecy Act, citing insufficient anti-money-laundering controls and allowing sanctioned entities (like Iran and Syria) to transact through the platform. Facing pressure, CZ pleaded guilty to compliance failures, not money laundering, agreeing to a $4.3Bn settlement and stepping down as Binance’s CEO.

CNBC: Another Crypto Industry Titan Hit With Criminal Charges

• Conclusion of a three-year DOJ investigation into crypto billionaire CZ and the crypto exchange he founded, Binance.

• Binance agrees to pay a $4.3 billion fine, the largest in US history according to the US… pic.twitter.com/wfLqBDnnAU

— Swan (@Swan) November 22, 2023

He was sentenced to four months in prison in April 2024, serving his time and walking free that September. But even after his release, the scars lingered. CZ repeatedly emphasized that he was acquitted of money laundering, instead calling the case “a political message against crypto”.

In a series of posts on X, CZ accused Democratic regulators of “weaponizing” the DOJ against digital assets, arguing that his prosecution reflected the party’s wider anti-crypto stance under Binde’s leadership.

A US Senator can't get her facts right, in a public post about a person's charge. There were NO money laundering changes.

The same Senator declared "war on crypto", on public TV, 5 days before my sentencing, during the Biden Admin.

Need a better example of weaponization of… https://t.co/87gTMP6mcn pic.twitter.com/4j1Us48Nop

— CZ BNB (@cz_binance) October 24, 2025

That friction only deepened when Democratic Senator Elizabeth Warren accused him in 2025 of pleading guilty to “criminal money laundering charges.” CZ clapped back, stating, “There were NO money laundering charges.”, threatening to sue Warren for defamation. Warren’s legal team fired back, calling her statement “accurate” and “speech-protected”.

However, the spat made one thing clear: CZ’s name had become shorthand for the Democratic crusade against crypto.

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Was the Prosecution Political or Principled?

Crypto supporters of Changpeng Zhao argue that the Democrats’ crackdown was a political, not a procedural, move. Under the Biden administration, regulators, such as SEC Chair Gary Gensler, took a hard line against the industry, pursuing “regulation by enforcement” rather than crafting clear rules.

CZ, alongside other prominent figures like Coinbase’s Brian Armstrong, became a target of what critics called “anti-innovation policy”.

IMO, @cz_binance deserved to get pardoned. His prosecution was politically motivated and his punishment was disproportionate. He was thrown in jail for failing to maintain an effective compliance program. Bankers have compliance failures all the time and they never get perp…

— Tyler Winklevoss (@tyler) October 24, 2025

After the 2024 election, things shifted. President Trump’s victory brought what many in the crypto industry described as a “policy reset.” Within months, Trump granted CZ a presidential pardon on October 23, 2025, calling his sentencing “overly harsh” and noting that it didn’t involve fraud or theft.

Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice.

Will do everything we can to help make America the Capital of Crypto and advance web3 worldwide.

(Still in flight, more posts to come.)…

— CZ BNB (@cz_binance) October 23, 2025

Democrats erupted in outrage. Elizabeth Warren and Senate Banking Committee members labeled it “pay-to-play corruption”, pointing to Binance’s rumored $2Bn investment in Trump’s stablecoin venture. CZ denied any quid pro quo, calling the criticism “another smear campaign from the anti-crypto establishment”.

The irony? CZ insists that he is just a blockchain visionary and crypto educator many times.

Keep plowing ahead. Education is a fundamental pillar for mass adoption. I wish schools taught how not to follow the herd and buy at 20,000, then sell at 6,000. Life is much better doing the opposite. https://t.co/FTj4aFTHZY

— CZ BNB (@cz_binance) August 16, 2018

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Can CZ Regain His Reputation, or Is His War with Democrats Just Beginning?

Despite his legal setbacks, CZ has rebounded in terms of reputation in global crypto markets. Binance remains the top exchange by volume, and the post-pardon rally in BNB and Bitcoin only strengthened its case that crypto thrives under friendlier regulation. Meanwhile, his feud with Democrats highlights a deeper ideological battle, one centered on control, privacy, and the limits of financial freedom.

Whether his comeback will outlast the political cycle remains to be seen. But for now, Changpeng Zhao has become more than just a legal case. It’s a political fault line dividing the future of crypto finance in America.

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Key Takeaways

CZ against Democrats, battle continues.

Is Changpeng Zhao targeted again by democrats?

The post Here’s How Crypto Uncle Changpeng Zhao Became Democrats’ Public Enemy No.1 appeared first on 99Bitcoins.